Weekly Market Recap - Dec 7

Overview

Bitcoin had a choppy trading week, bouncing back and forth between $18.6k and $19.5k repeatedly. Bulls buy on the minor dips, as bears sell on rallies to the resistance level of $19.5k but it is still not clear which side has the advantage. If the price of BTC breaks the barrier of either side (either below 18.6k or above 19.5k), there may be a lot of movement in one direction.

Market Recap

Even though Bitcoin has struggled to break past the $20k mark, the space overall continues to become more and more accessible to new investors. Last week, Visa partnered with BlockFi, a well-known crypto platform for lending and interest-earning, to announce the launch of its Bitcoin rewards credit card in early 2021. The card comes with a $200 annual fee and earns 1.5% rewards back in Bitcoin on all fiat purchases, allowing customers to accrue Bitcoin every day without having to change their spending and investing habits. Recently, Visa also connected its global payments network of 60 million merchants to USDC. It will be interesting to see how other credit card companies get involved over time, but as of now, Visa is leading the charge.

In macro news, U.S. Senate Majority Leader Mitch McConnell is prepping a $900B stimulus package, planned to be announced around 3 pm today. On top of this, Biden has already said that he plans a $7 trillion recovery package to tackle the impact of coronavirus when he assumes office. This mass printing of USD will continue to weaken the dollar, giving Bitcoin much more appeal as a safe-haven asset from inflation. Analysts agree that 2021 may be the worst year ever for the U.S. dollar, and the crypto industry is sure to benefit from it.

Other cryptocurrencies traded choppily like BTC over the past week. Ethereum holders have continued to stake their ETH for the migration to proof-of-stake and believe in its long-term success. The SPARK airdrop will occur at 00:00 GMT on 12/12, and all XRP holders will receive Spark tokens for each XRP they have. This will no doubt affect the price of XRP in the coming week and will be interesting to see how the price moves. For most altcoins, all eyes will be on BTC to see how the price moves, as they will likely mirror the same behavior.

Tune in next week for another edition of Nexus’ Market Recap. Start trading a robust pool of cryptocurrencies and fiat pairings with today.